- From 580 million at the end of 2023 to 617 million by June, there were 6.4% more owners.
According to Crypto.com’s most recent market sizing analysis, ownership of the global cryptocurrency market increased significantly during the first half of the year.
From 580 million at the end of 2023 to 617 million by June, there were 6.4% more owners. The introduction of spot exchange-traded funds connected to the two digital assets, in particular, was a major factor driving the rise in the Ethereum and Bitcoin ecosystems.
With ownership increasing 5.9% to reach 314 million by mid-year, or 51% of all cryptocurrency holders, Bitcoin (BTC) continues to be the most popular cryptocurrency.
Ethereum (ETH) adoption, on the other hand, increased more sharply, rising 9.7%, to 136 million total ETH owners, or 22% of the worldwide market.
Growth-promoting factors
The paper claims that two significant occasions were responsible for the rise in BTC acceptance. Important events included the introduction of spot Bitcoin ETFs in the US and the fourth halving of the flagship cryptocurrency in April.
The halving event strengthened Bitcoin’s attractiveness as “digital gold” and attracted substantial institutional interest by reducing the block rewards for miners from 6.25 BTC to 3.125 BTC. The analysis adds to the acceptance of Bitcoin by estimating that between 388,000 and 1.6 million people have invested in it through US spot ETFs.
The Dencun update in March, which drastically lowered transaction costs on Ethereum’s Layer-2 (L2) networks, was the main driver of Ethereum’s growth. Since this upgrade improved Ethereum’s scalability, L2 activity has increased dramatically, accounting for over 90% of all transactions on the network (up from 77% before to the upgrade).
Furthermore, the total value locked (TVL) in Ethereum’s DeFi ecosystem reached $100 billion in the first quarter, almost two times greater than the previous quarter, thanks to liquid restaking initiatives.
Adoption by Institutions
According to the research, there was significant growth in both March and April, with monthly rises of 1.7% and 1.6%, respectively, in line with the Dencun upgrade and the Bitcoin halving. In this time frame, institutional investors were essential to Bitcoin’s steady rise; by the end of June, US spot Bitcoin ETFs had drawn inflows exceeding $14 billion.
enhanced institutional interest also helped Ethereum, especially in the run-up to the SEC’s decision to end its investigation into the cryptocurrency and the regulator’s approval of spot ETH ETFs, both of which have enhanced investor trust in Ethereum and the market as a whole. ETH prices surged to $3,900 by June because to the initial rise in interest.
Since their respective launches, the spot ETFs have performed remarkably well; funds associated with Bitcoin have broken multiple records in the ETF market.
The market has, however, found it difficult to break above all-time highs in recent weeks, despite the market’s notable gains throughout the first half. This is because of increased sell pressure brought on by macroeconomic concerns and the worsening geopolitical situation in the Middle East.
Both ETH and BTC were trading well below this year’s top prices as of the time of writing, at $2,612 and $59,121, respectively.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
